Interest-bearing instrument of obligation.



G. H. DAVIS.

INTEREST BEARING INSTRUMENT 0F OBLIGATION.

APPLICATION lFILED MAY l, 1909.

Patented Oct. 20, 1914.

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INTEREST BEARING INSTRUMENT 0E OBLIGATION.

APPLICATION FILED MAY 1. 1909A Patented 0013. 20, 1914.

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INTEREST BEARING INSTRUMENT 0F OBLIGATION,

APPLICATION FILED MAY I, 1909.

Patented o@t.2 ,1914.

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C. H. DAVIS.

INTEREST BEARING INSTRUMENT 0F OBLIGATION.

APPLIGATIO'N FILED MAY 1, 1909.

Patented Oct. 20, 1914.

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INTEREST BEARING INSTRUMENT 0T OBLIGATION; APPLICATION FILED MAY l. 1909.

1,1 14,342. Patented Oct. 20, 1914.

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APPLICATION FILED MAY 1, 1909.

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INTEREST BEARING INSTRUMENT 0E OBLIGATION.

APPLI-OATION FILED MAY 1, 1909. Patented Oct. 20, 1914.

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Witwe/awo CHARLES HALL DAVIS, 0F PETERSBURG, VIRGINIA.

INTEREST-BEARING INSTRUMENT' OF OBLIGATION.

Specification of Letters Patent.

Patented Oct. 20, 1914.

` Application mea may i, 190s. serial No. 493,436.

To all 'whom itmajz/ concern.'

' Be it known that I, CHARLES HALL DAVIS. citizen of j the United States, residing at Petersburg, in the county of Dinwiddie and State of Virginia, have invented certain new and useful Improvements in 'Interest- Bearing Instruments of Obligation, of which the following is a specification.

My invention relates to improvements in interest-,bearing instruments of obligation, such as bonds, certificates of deposit, and the like, the type of instrument being allied to that forming the subject-matter of Letters-Patent of the United States granted to me November 13, 1906, No. 835,703;

Interest-bearing instruments, such as bonds, as heretofore provided for commercial use, have been generally in a form requiring issueV as of a particular date and for a specific purpose, the body of the bond containing the verbiage of the obligation, while the interest-coupons have a predetermined date of maturity initially placed thereon,.coupons being detached at the date of maturity;v where the bond is actually is-v sued at a date subsequent to the date of iii-aturity of any of the coupons, said coupon is detached prior to the actual issue. Owing to these facts, the issuance of interest-bear- Iing instruments requiring a simultaneous issuance of subsequently-maturing interestcoupons has been (with the exception of the structure forming the subject-matter of the LettersIatent heretofore referred to) confinedfmainly to bonds or such other obligation in which the date of issue for a plurality of separate obligations is the same; and this limitation in issue has been still further restricted by reason of the requirement that the purpose vof issue must be stated therein.l This restriction has been removed by the instrument which forms the subject-mattei' of said Letters-Patent, which permits ofthe application of the general features of a bond, (a simultaneous issue of .the obligation and coupons) to other forms of obligation such as certificates of deposit, and the like, where the date of issuel of a number of obligations need not be confined to a single date` and in which `each obligation is issued for a fixed period beginning with the actual date of issue.

W'hile the instrument referred to permits a wide expansion in` the use of interestbearing instruments which include the 1nterest-coupons, said instrument requires the i insertionof dates and other data separately 1n the body of the certificate and in each coupon, as Well as requiring the separate completion of a plurality of interest-coupons; and while it is possible to indicate the amount of the obligation and the amount of the interest of a plurality of coupons by. punching certain indicia thereon, *such punching requires the punching of the amount and the interest indicia separately, thereby permitting liability of error in punching to be present, there being no absolute assurance that the punched interest' indicia is the true interest-amount based on the rate of interest and the face value of the obligation.

The instrument forming the subject-matterof my present invention, like that of said Letters-Patent,y provides for the use of coupons each of which has a face value .of one per centum of the obligation, the number of coupons provided for each interest year corresponding to the rate of interest; for instance, if the rate of interest is three per centum, three coupons, each having a value of one per centum of the face-value of the obligation, are provided' for each interest year, the dates of maturity of successive coupons being in successive intervals of four fmonths. 4The present instrument, however, differs fromthat referred to in several essential features, these features combinedly providingfor safety and economy in issue, and insurance against tampering with any portions ofthe instrument which would monetarily affect the instrument or contract yentered into between the issuer and the person to whom issue is made, these forming the principal objects of the present invention. Among these features are the following: Arranging the instrument of obligation and the successive interest coupons in superposed relation, and providing each i with indicia adapted to be punched to represent an amount, each having the indicia arranged to permit simultaneous punching of the parts of the instrument to indicate the face value` of, the obligation and the amount o f the face value of each interest coupon, thereby providing against .liability of error in relative amounts ,of interest coins'- putation and amount'of obligation, and also providing that each part of the instrument carries both amounts, one serving as a check against inaccuracy ofthe other. Arranging the superposed parts indicated with successively arranged month and year indicia,

V to indicate the date ofissue and of maturity and also with date of the month indicia, said indicia being arrangedon the several parts,

of the several parts of the obligation, these dates being -provided by simultaneous punching of the parts. Providing an interestbearing instrument of obligation having attached interest coupons, with a detachable' receipt acknowledging the issue of the instrument of obligation and bearing the signature of the recipient, said receipt carrying indicia indicating the facevalue of the instrument, the amount of each interest-coupon, the date of issue of the instrument, and the date of one interest-payment, said indicia being arranged t6 be punched simultaneously with similar indicia carried byparts of the instrument, thereby providing a record in the hands of the issuer by means ing arranged in such manner that simultaneous punching of the indicia of the superposed coupons will provide successive dates of maturity corresponding to the interest-- period covered by the amount of. interest indicated as the face-value of the coupon.

To these and other e ds, the .nature of which will be readily un erstood as the invention is hereinafter disclosed, said vinvention consists in the improved arrangement and combination of parts hereinafter fully described, illustrated in the accompanying drawing, and particularly pointed out in'the appended claim.

In the drawings, in which similar refer-l ence characters indicate similar parts in each of the views, Figure 1 is a View of the face of the book. Fig. 2 is a view of the reverse side of-the u er or si ature card sheet of the book. Fig. 3 is a view of the face of one of the interest coupons. Fig. 4 is a view of the reverse side of the same.

Fig. 5 isa View. of a ,fragmentary portion of the obverse face of one of the interest' coupons, the portionshown being the date indicia of the interest coupon for the interest period succeeding that shown in Fig.

3. Fig; 6, is aview similar to Fig. 5, showing the indicia for the succeeding interest coupon following that disclosed in Fig. 5.

Fig. 7 is a view of the face side of a certificate of deposit includedin the instrument. Fig. 8 is a view of thereverse'side of the same. Fig. 9 is a perspective View of the instrument complete prior to being issued.

The instrument of obligation forming the subject-matter of the present invention, in lts unissued condition, consists of a signature card A; a plurality of interest lin the drawings as a pair of staples 11 of any preferred design. When secured together in this form, the entire instrument is in the form of a book having detachable leaves, the preferred arrangement of the leaves being the following in successive order from the face of the book: the signature card A, the .K agreement D, the interestcoupons B successively arranged according to their dates of maturity, and the certificate of deposit C. l

As in the case of the patented instrument hereinbefore referred to, the successive in tercst periods are arranged in such manner that each interest coupon exactly covers the interest-amount on the principal on a basis of one (1%) per centum, this arrangement being provided by dividing the year into the proper number of successive interest periods to provide for such one per -centum rate. By this arrangement tbe face value of any one interest-coupon ill be exactly one one-hundredth of the principal. In

`the prior construction indicated the use of two sets of indicia-on each couponenabled a comparison of punched indicia to ascertain the correctness of the interest computation, but, by reason of the fact that the .two sets of indicia require separate punching a series of coupons on one leaf suiiicient in number to cover the period of a year. And in said prior instrument, the certificate of deposit-did not bear punched indications of the amount, the latterbeing written on the face of the certificate. In the present arrangement 0f the instrument these diiiiculties are met by arranging the indicia of the several partsyof the instrument in such manner that a single `punchingI of the signature card to indicate the amount ldeposited will provide a punched recordlin each of the parts to show the" amount deposited and the face-value of each interest coupon, thereby insuring thegcorrectness of. every part of the instrument, requiring a checking ot but one amountf This amount-indication is not only present in the interestcoupons, 'but also in the certificate of deposit. rlhis result is obtained by the following arrangement ofindicia: At a suitable point on each of the parts of the instrument, shown at the left in the drawings, a space is provided in which a plurality of vertical rows of integers in numerical order are arranged, the arrangement of integers being the same inA` each row or column with the Uenfception of the lower integer, which, in the form shown in the drawings, has the 'integer v10 as the lower integer, the corresponding space in the remaining columns being indicated as X. IThese rows form the indicia for indicating the amount.` l/Vhere the indicia is intended to indicate the amounty deposited, the several rows are successively headed Th0us,

e llunds, 'Tens, Dolls, the vreading being from left to right where the deposit is indicated (ha the obverse face of the part, and in the reverse'direction (from right to left) Where the indicia is arranged on the reverse face. 'Where the amount punched is to indicate the face-value of one interestcoupon, the headings are successively indicated as Tensf Dolls, Dimes, and

Cents, the reading of' the headings being from right to left when the `indicia is on the reverse face of a part, and Jfrom left to right when on the obverse face. e

As the two indicia (the Amount dedeposited and the Value of each'interest check are located on opposite faces of f each of the parts and so located as to exactly register, and the reading of the headings of the two indicia is in exactly opposite directions, it will be seen that a punching of an integer of any row of the Amount `de posited indicia will thereby produce a punched opening of the exact integer on the opposite side that will indicate one per centum of the integer representing the deposit. For instance, ifthe integers l, 2, 3

and 4 of successive rows ofthe indicia shown in Fig. l be punched, to indicate the amount of one thousand, two hundred, three tens (thirty) and four (1,234) dollars, the indicia of the opposite side df the card shown in said figure (see Fig. 2) will show one ten, two dollars (twelve dollars), three dimes and four cents ($12.34), an amount which is one per centum of the principal indicated by the'punchings of the amount deposited. Where the amount deposited is $10,000 (which is the maximum of the form coupon as ten tens or one hundred dollars. If the deposit is of an amount less than one thousand dollars, the column headed Thous has the 0 punched; and if the deposit should be of an amount such, for instance, as $20, the integer 2 of the column headed Tens. would be punched, the remaining columns having the 0 punched, one of the requirements of issue being that each column will have one integer punched each part bearing the notice that it is Good only when one space is punched in each column thereby giving notice of the invalidating of the instrument if tampering is attempted.

The registering indicia described is provided on each of the parts of the instrument,

the Amount deposited being placed on the obverse face of the signature card A, the agreement D, and the certilicate of deposit C, and on the reverse face of each interest coupon, the interest value being in each instance placed on the opposite side, appearing on the obverse face of only the interestcoupons B. As the parts are arranged in such manner that the indicia of all parts registerrwith that of the upper part (the signature card A),it will be readily underfstood that a single punching will y.provide a permanent record on each sheet of the parts of the amount deposited and the value of the interest-coupons; it will also be seen that in each case the face value of the particul ar part having any monetary val-ue the interest-coupons and the certificate of deposit) is indicated on the obverse face of the art. i

p: In the drawings, the indicia of the` Amount deposited is designated 20 the indicia for the Value of each interest checkj being designated. as 21.

The invention herein described not only provides for punched amount-indication for each part of the instrument, but, in addi-v tion, as heretofore stated, provides for an automatic indication of dates of deposit and maturity, by a single punching of the parts.

This is provided bv the following arrangement of indicia: Oh the obverse face of each of the parts of the instrument,` are arranged a plurality of rows of date indicia, arranged in two `divisions, viz.: a row or rows of successively arranged blocks or squares 25 divided to form a blank space and a space containing the name of a month and the year, and a row or rowsof successively arranged integers from 1 to 31 to indicato the day of the month, the latter being indiacted as 26.y The first division has the month-names arranged in succession (shown f.

in horizontal rows in the drawings), the arrangement preferably being such as to'provide for the inclusion of the twelve months of a year in a single row; in the drawings, the successive arran ement covers a period of. two years and eig t months, each month having a blank space to permit of punching. The second division has the integers in numerical sequence, and for the purpose of compactness the arrangement provides for one complete row and a part of another row. -As n the case of the amount indicia, the reverse face of the instrument i's provided with a similarL arrangement of the date indicia, the reading beingexactly reverse from that of the obverse face, to provide for registration of punching'spaces, the month-day integers being in exact registration. And kwhile the arrangement of month-name and year is in succession as on the front face, the month names and year differ on the opposite faces of the sheet.

As will be readily seen, the date indicia is so-arranged as to permit of an indication of a specific date between the extremes of the month dates shown in the squares 25, by the punching of the space alongside of the desired month and the punching of the proper month-day integer; for instance, in Fig. 1 of the drawings, the punching is opposite the square for March, 1909 and on the integer 5, this punching indicating that the date of deposit was March 5, 1909. Should the punch mark bel placed on any other square in addition to the two marks shown, it will oe a clear indication of tampering and under the conditions of issue the instrument is rendered void. As will be readily understood any other date than that indicated by the punched` marks in Fig. l may be indicated, as long as the squares 25 contain the name of the month and the year which the punching is to indicate the ate.

As heretofore pointed out, ,the date indicia on the opposite face of either of the parts of the instrument is printed lso that the indicia of bothfaces register, that` on the reverse face reading from right to left or in reversal to that of the obverse face. By commencing the successive month and year dates shown on the reverse face of thepart @Vith `an earlier or a later month and year date from that beginning the series on the obverse face, it will be obvious that a punching of a square on the obverse face to indif cate one fact will provide a sinnlar punching of a different month of the reverse face to indicate a dierent fact. This arrangement permits ofthe obtaining of two distinct dates by a single punching the date i 'indicia of the'parts of the instrument; for

instance, if the arrangement be such that the date indicia of the obverse face of the interest coupons begins-with the name of the month which corresponds exactly with the beginning of an exact interest-period with respect to the month name' indication of the date of deposit date indicator, it will be readily understood that the punching of the date of issue will automatically give an indication of the date of payment or maturity of the interest coupon; or if the months and years of the opposite faces of the certificate of deposit be arranged to provide forl 4the exact life ofthe certificate when issued, the single punching will indicate the date of issue and date of maturity of the certificate. This arrangement will be more fully understood-by a reference to the drawings, in which it is assumed that the instrument was issued on March 5, 1909, and bears interest at the rate of three per centum per annum. As all of the date indicia of the several parts of the instrument are arranged to register, it will be understood that the punching of ythis date as exposed on the signature card, provides a punching of dates throughout the instrument, and that where the' indicia begins with the same month and year as that date of deposit on each leaf or part of the instrument, it being shown on the obverse facev of the signature card, the agreement v andthe certificate of deposit, and on the reverse face of each of the interest coupons. The rst interest coupon has the indicia on its obverse face beginning with July, 1909, the fourth month after March, 1909, the interest periods being of`a length of four months; therefore, when the date of issue indicating the monthof March, 1909, was punched, thispunchin simultaneously gave a punch indication o the month of July, 1909, which forms the date the interest represented by the coupon is due, in other words, ind1catingtl1e date of maturity of the coupon. The next interest coupon has its indicia beginninflI with the month of November, 1909, and the punching of the dateD of issue indicates that as the month containing the-date of maturity of that coupon. The succeeding interest coupon has its indicia beginning withthe month `of AMarch, 1910, and each successive coupon is similarly arranged to provide for the several interest periods, with the result that the obverse face of each interest coupon bears a punched indication of the date of maturity of the coupon, the punching being provided on the date of issue.

The indicia on thereverse face of the certilicate of deposit shown in Fig. 8 begins with the month of March, 1911, that bein the date of the last interest ayment and o maturity of the certificate, t e instrument being issued to mature at the end of two years.

' As will. be understood, therefore, those parts of the issued instrument which have a negotiable monetary value, viz., the certificate of deposit and the interest-coupons, each contain permanent indication (by punching) of the date of deposit, the amount of deposit the face value of the part, and the date of \matuqrity; in addition, the certificate of deposit bears an indication' of the amount of each interest coupon. Owing to the fact that the date of maturity is not essential on the signature card and the agreement (these v having no negotiable monetary' value) a punched indicatiorrof such date is not given, the indicia providing for an indication of the datewvhen the first interest coupon matures; this provides a check against the use of a stolen form fro-m which the interest coupons have been detached, theposition of the punch marks and the particular index" month shown at the beginning of the indicia serving to guard -against fraud in this connection, it being readily understood that calculations based on the showing of the signature card in possession of the bank in connection withthe consecutive numbering of the interest coupons, permits of a ready comparison and checking. As shown by the drawings, each of the eral parts of the instrument contains printed matter specific to the part on which it is contained, each part, however, containing reference'to the punched data. This specific matter will now bel pointed out in detail. The signature card A isa receipt, signed by the depositor for the coupon certificate of deposit, and contains, in common with the remaining parts of the instrument, the cautionary'notice relative to the invalidity of thepinstrument by incomplete or excessive punching. The reverse face of this. card (shown in Fig. 2) contains specific instructions relative to the completion of the instru;v

ment. This card remains with the issuer of the instrument.

The obverse face of each interest coupon B (see Fig. 3) contains the promise to pay the amount punched in the amount indicia on the date indicated in the date indicia, the coupon having a number showing its relation to the remaining interest coupons of the instrument, and also bearing the number of the instrument, the latter being the only portion of the check or coupon which is not provided With the instrument as printed, it being understood that the check will contain the signature of'the person authorized to sign it either in written or printed form. The indicia on the obverse face of the check or coupon is punched to indicate the face value of the check or coupon and its date of maturity. The reverse face of each interest check or coupon (see Fig. `4) contains in- 65 formationindcating the manner of its use,

I,and the caution relative to the perfect punchin'g of the check, and indicia showing the 'amount and date of deposit.

The obverse face of the certificate of deposit C (shown in Fig. 7 is provided with suitablespaces to receive the written data of the deposit and as the facts contained therein must agree with the punchings of the indicia contained thereon a check against fraudand error is thereby provided, the obverse face also contains instructions as to when the certificate'must be redeemed. The

reverse face of the certificate (shown in Fig. 8) contains instructions as to the manner in which the certificate may be used together with a space for the signature of the depositor; the indicia contained on the reverse face indicates the face value of each interest check and the date of maturity of the last interest. check, this also indicating the date of maturity of the instrument as further interest will not be paid on the certificate after that date.` The agreement D contains the same indicia as is contained on the signature card in addition to the agreement between the issuer of the certificate and the provider punching indicates the amount or face value Y of both principal and individual interest indebtedness together with thel dates of interest payments and maturity of the obligation. In addition, the use of a signature card provides a permanent record in the hands of the party issuing the instrument by means of which he is able to absolutely check the remaining portions of the instrument which passes out of his hands at the time of issuance, and as said card contains' the signature of the depositor, it provides a protection to the issuer against claim of fraud in case the signature on the card and certificate C are not in strict accord; if not in such accord, the signature card will provide record evidence on which to base la refusal to meet the obligation when presented at maturity.

Having thus described my invention, what l claim as new is:

An instrument of obligation comprising a plurality of superposed leaves, said leavesconsisting, respectively, of a signature certificate, an agreement certificate, a depositcertificate, and a plurality of interest coupons, said signature, agreement and'deposit certificates having their upper faces rovided with deposit indicia at one end an deposit date indicia extending longitudinally thereof, the reverse faces of said certificates having interest indicia of like numerals of different denominations to that of said deposit indicia of'the front faces and in register with same, said reverse faces of said eertiicates also having instrument life date indicia extendinglongitudinally thereof and in 'registry with said Xed date indicia vof the upper faces, said interest coupons each having-its upper'face provided with interest indicia at one end and date indicia extending longitudinally thereof to designate the date of maturity of each coupon, the reverse face of each of said coupons having deposit indicia at one end thereof of like numerals of different denominations to that of said interest indicia, and in registry with same, said reverse faces of said coupons also having deposit date indicia in registry with the interest date indicia of said upper faces, said deposit and interest indicia being acted upon simultaneously by a single operation, said date indicia also being acted upon simultaneously by a single operation.

In testimony whereof I affix my signature in presence of two Witnesses.

, CHARLES HALL DAVIS.

Witnesses:

WALTER SPARKLIN, W. L. YOUNG. 

